Drill Pipe Market Projected to Reach $1.7 Billion by 2019

The report "Drill Pipe Market by Grade (API, Premium), Application (Onshore, Offshore), & Geography - Global Trends & Forecasts to 2019", defines and segments the global drill pipe market with an analysis and forecast of the revenue. The drill pipe market will grow from an estimated $1.17 billion in 2014 to $1.7 billion by 2019, with a CAGR of 7.9%.

Drill pipes are an integral component of the drilling operations. Drill pipes are used during drilling operations to connect the surface-drilling equipment to the bottom-hole assembly and the drill bit. They are used to transmit power from the drilling motor above the ground to the drill bit, and also to carry drilling fluid (mud) down to the drill bit to flush drill cuttings to the surface for removal.

Drill pipes are critical for any drilling and exploration activity carried onshore or offshore. They are used extensively worldwide at drilling sites for drilling through the rock formations. The high world energy demand and rise in population are forcing to drill as deep as possible and in challenging geological conditions. The shale boom in North America and other regions have again fuelled the growth of drill pipes. The largest application area for drill pipe is onshore as most of the drilling activities are carried onshore. The major countries for the drill pipe market are U.S., China, and Russia where most of the drilling activities are taking place.

Global market is witnessing a high growth due to increase in the exploration and production activities in complex geological formations and harsh environments such as the Arctic. The report categorizes the market for drill pipe, by grade- API and premium grade, by application- onshore and offshore, & by geography.

The U.S. market is driven by the major oil & gas exploration activities in major onshore areas, the Gulf of Mexico, and Alaska. The U.S. has experienced a rapid increase in natural gas and oil production from shale and other resources. High drilling efficiency and new well-productivity, along with an increase in the rig count, have been the main drivers of the recent production growth in the U.S. The recent boom in shale gas could also promote a rapid expansion of the petrochemical sector.

The U.S. recorded the highest market size at a value of $490.2 million in 2013. It is expected to reach $828.2 million by 2019, from an estimated value of $560.3 million in 2014, at a CAGR of 8.1% during the forecast period.

Drill pipe market is segmented into two categories in terms of grade, namely, API grade and premium grade drill pipe. The API grade is based on specifications defined by the American Petroleum Institute (API) and it follows the latest API specifications, 5D and 7. The drill pipe market for the API grade segment recorded the largest market volume in 2013, at 171.74 thousand short tons. This segment is expected to grow from an estimated 179.09 thousand short tons in 2014 to 183.46 thousand short tons by 2019, at a CAGR of 0.5% from 2014 to 2019.

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